- XRP’s recent bearish impulse suggests potential downside, but liquidity zones above could signal a temporary rally
- A demand zone reaction might lead to a bullish continuation if buyers take control
- The market remains unpredictable—both scenarios hinge on key levels and price action signals
Hey traders! Let’s dive into XRP’s current market structure, which, to be honest, is a little murky right now.
If we zoom into the H1 timeframe, the most recent impulse move was bearish. This suggests that XRP could continue to trend downward.
However, as with all things in trading, nothing is certain, and there are a couple of scenarios worth keeping in mind.
Scenario 1: Liquidity Grab Above Before a Drop
One possible path is that XRP might make a move upward before continuing its bearish trajectory.
Why? Well, there’s liquidity sitting just above the current price that the market might target.
This kind of move often happens in crypto – a “fake-out” to the upside before sellers regain control.
Scenario 2: A Bullish Continuation After a Reaction
On the flip side, XRP could continue its climb higher. But, and this is important, before that happens, it might dip lower to grab the liquidity sitting below and react from a demand zone.
These demand zones can act as springboards for upward momentum if buyers step in strongly enough.
The Truth? The Market is Unpredictable
Here’s the thing, though: no one has a crystal ball in trading.
XRP’s price could just as easily defy these scenarios and move unpredictably. As much as we analyze and prepare, the market can and does do whatever it pleases.
What Should You Do?
Keep an eye on those key levels of liquidity above and below the price. Look for reactions, and let the market confirm your bias before jumping in. Trading is all about probabilities, not certainties – so always manage your risk and prepare for multiple outcomes.
What do you think? Are you leaning bearish or bullish on XRP right now?
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
